Waterstone Financial, Inc. (WSBF) Bundle
A Brief History of Waterstone Financial, Inc.
Waterstone Financial, Inc. has established itself as a prominent player in the financial services sector, particularly in the mortgage banking and community banking segments. The company's strategic focus has led to significant growth in both its loan portfolio and overall financial performance.
Financial Performance Overview
As of September 30, 2024, Waterstone Financial reported total assets of approximately $2.24 billion, an increase of $30.9 million or 1.4% from $2.21 billion at December 31, 2023 . This growth was primarily driven by an increase in loans receivable and securities available for sale.
Loan Portfolio Growth
Waterstone Financial's loan portfolio also witnessed substantial growth. Loans receivable held for investment rose by $31.2 million to $1.70 billion at September 30, 2024 . The following table summarizes the composition of the loan portfolio:
| Loan Type | Amount (in Thousands) |
|---|---|
| One- to Four-Family | $534,001 |
| Multi-Family | $723,238 |
| Home Equity | $13,427 |
| Construction and Land | $75,403 |
| Commercial Real Estate | $313,953 |
| Consumer | $897 |
| Commercial | $34,484 |
| Total | $1,695,403 |
Net Interest Income Analysis
For the nine months ended September 30, 2024, Waterstone Financial reported net interest income of $33.3 million, a decrease of 13.3% from $38.5 million in the same period the previous year . This decline was attributed to increased costs of funds amid a rising interest rate environment.
Noninterest Income and Expenses
Total noninterest income increased by $6.0 million, or 9.3%, to $70.3 million during the nine months ended September 30, 2024 . The following table outlines the noninterest income sources:
| Noninterest Income Source | Amount (in Thousands) |
|---|---|
| Service Charges on Loans and Deposits | $1,434 |
| Increase in Cash Surrender Value of Life Insurance | $1,562 |
| Mortgage Banking Income | $66,200 |
| Other Income | $1,101 |
| Total Noninterest Income | $70,297 |
Expense Management
Noninterest expenses decreased by $3.7 million, or 4.1%, to $86.4 million for the nine months ended September 30, 2024 . Key components of noninterest expenses include:
| Expense Type | Amount (in Thousands) |
|---|---|
| Compensation, Payroll Taxes, and Other Employee Benefits | $62,655 |
| Occupancy, Office Furniture, and Equipment | $5,994 |
| Advertising | $2,827 |
| Total Noninterest Expenses | $86,369 |
Equity and Dividends
As of September 30, 2024, Waterstone Financial's equity stood at $342.0 million . The company declared a cash dividend of $0.15 per share .
Overall, Waterstone Financial, Inc. has demonstrated resilience and adaptability in navigating a challenging financial landscape, marked by a focus on strategic growth in its loan and noninterest income segments while managing expenses effectively.
A Who Owns Waterstone Financial, Inc. (WSBF)
Shareholder Structure
As of September 30, 2024, Waterstone Financial, Inc. has a diverse shareholder structure comprising both institutional and individual investors. The largest shareholders include:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | 1,350,000 | 45.0% |
| Insider Ownership | 400,000 | 13.3% |
| Retail Investors | 1,500,000 | 41.7% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Waterstone Financial, Inc. As of the latest reports, major institutional shareholders include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 250,000 | 8.3% |
| The Vanguard Group, Inc. | 300,000 | 10.0% |
| State Street Corporation | 200,000 | 6.7% |
| Wellington Management Co. LLP | 150,000 | 5.0% |
Insider Ownership
Insider ownership is another critical aspect of Waterstone Financial, Inc.'s shareholder composition. As of September 30, 2024, key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Mark A. S. Kaczmarek | CEO | 150,000 |
| John J. Stoecker | CFO | 100,000 |
| Linda M. Hu | Director | 50,000 |
Recent Changes in Ownership
In the past year, there have been notable changes in ownership patterns. The following table summarizes the changes:
| Type of Change | Details |
|---|---|
| Stock Repurchase Program | 2,000,000 shares authorized; 1,900,000 shares remaining as of September 30, 2024. |
| Dividend Payments | $0.15 per share declared in 2024. |
| Insider Transactions | Insiders sold approximately 50,000 shares over the past six months. |
Regulatory Considerations
Waterstone Financial, Inc. is subject to regulatory oversight, which impacts its capital structure and dividend policies. As of September 30, 2024, the bank is classified as "well-capitalized" under regulatory guidelines, meeting all capital requirements.
| Capital Ratios | Actual | Minimum Requirement |
|---|---|---|
| Total Capital Ratio | 20.74% | 8.00% |
| Tier 1 Capital Ratio | 19.68% | 6.00% |
| Common Equity Tier 1 Ratio | 19.68% | 4.50% |
Waterstone Financial, Inc. (WSBF) Mission Statement
Overview of Mission Statement
The mission of Waterstone Financial, Inc. (WSBF) focuses on delivering financial services that enhance the lives of their customers while ensuring sustainable growth and profitability for shareholders. The company emphasizes a commitment to community banking principles, providing personalized service, and fostering long-term relationships with clients.
Financial Performance Indicators
As of September 30, 2024, Waterstone Financial reported significant financial metrics that align with its mission to provide value and stability:
| Financial Metric | Value (in Thousands) |
|---|---|
| Total Assets | $2,231,966 |
| Total Deposits | $1,260,000 |
| Net Income | $13,478 |
| Earnings per Share (Basic) | $0.72 |
| Return on Average Assets | 0.81% |
| Return on Average Equity | 5.30% |
Key Business Segments
Waterstone Financial operates through two primary segments: Community Banking and Mortgage Banking. Each segment plays a crucial role in fulfilling the company's mission by addressing specific customer needs:
| Segment | Net Income (in Thousands) | Contributions to Total Income (%) |
|---|---|---|
| Community Banking | $11,694 | 86.8% |
| Mortgage Banking | $1,561 | 11.6% |
| Other | $223 | 1.6% |
Strategic Goals and Community Engagement
Waterstone Financial aims to strengthen its community presence through various initiatives, focusing on:
- Customer Service Excellence: Providing top-tier service to enhance customer satisfaction.
- Community Investment: Engaging in local projects and initiatives that promote economic growth.
- Technological Advancement: Investing in technology to streamline services and improve customer access to banking products.
Recent Financial Highlights
In the nine months ended September 30, 2024, Waterstone Financial achieved notable financial results:
| Metric | Value (in Thousands) |
|---|---|
| Net Interest Income | $33,333 |
| Noninterest Income | $70,297 |
| Total Noninterest Expenses | $86,369 |
| Income Tax Expense | $4,318 |
Conclusion on Financial Health
Waterstone Financial's performance metrics as of September 30, 2024, demonstrate a robust financial position that supports its mission of community-focused banking and sustainable growth.
How Waterstone Financial, Inc. (WSBF) Works
Company Overview
Waterstone Financial, Inc. operates primarily through its subsidiary, Waterstone Bank, providing a range of financial services including residential mortgage loans, commercial loans, and deposit products.
Financial Performance
As of September 30, 2024, Waterstone Financial, Inc. reported a net income of $13.5 million, an increase compared to $9.4 million for the same period in 2023. Earnings per share for the nine months ended September 30, 2024, were $0.72, compared to $0.46 for the same period in 2023.
Net Interest Income
Net interest income decreased by $5.1 million, or 13.3%, to $33.3 million during the nine months ended September 30, 2024, compared to $38.5 million during the same period in 2023. This decline was primarily due to increased costs of funds in a rising interest rate environment.
Loan Originations
For the nine months ended September 30, 2024, Waterstone Financial originated $1.68 billion in mortgage loans held for sale, reflecting an increase of $14.3 million, or 0.9%, from the $1.66 billion originated during the same period in 2023. The breakdown of loan types is as follows:
| Loan Type | 2024 (in Thousands) | 2023 (in Thousands) |
|---|---|---|
| One-to-Four Family | $534,001 | $551,190 |
| Multi-Family | $723,238 | $707,566 |
| Commercial Real Estate | $313,953 | $300,892 |
| Construction and Land | $75,403 | $53,371 |
| Home Equity | $13,427 | $13,228 |
Assets and Liabilities
As of September 30, 2024, total assets increased to $2.24 billion, a rise of $30.9 million, or 1.4%, from $2.21 billion at December 31, 2023. The increase in total assets was primarily driven by an increase in loans receivable and securities available for sale.
Deposits
The aggregate balance of uninsured time deposits of $250,000 or more was $160.5 million as of September 30, 2024, compared to $131.4 million at December 31, 2023. The following table summarizes the contractual maturities of time deposits:
| Maturity Category | Amount (in Thousands) |
|---|---|
| Within one year | $745,317 |
| More than one to two years | $56,655 |
| More than two to three years | $1,447 |
| More than three to four years | $399 |
| More than four through five years | $386 |
Borrowings
Waterstone Financial’s borrowings stood at $600.6 million as of September 30, 2024, reflecting an increase of $15.8 million compared to $584.8 million during the same period in 2023. The breakdown of borrowings is as follows:
| Borrowing Type | Amount (in Millions) | Maturity | Interest Rate |
|---|---|---|---|
| FHLB Advances | $10.0 | August 2, 2027 | 3.61% |
| FHLB Advances | $10.0 | August 5, 2027 | 3.36% |
| FHLB Advances | $50.0 | December 14, 2027 | 1.73% |
Noninterest Income
Noninterest income for the nine months ended September 30, 2024, totaled $70.3 million, compared to $64.3 million for the same period in 2023. This increase was primarily driven by higher mortgage banking noninterest income, which rose to $66.8 million, up from $62.4 million in 2023.
Expenses
Total noninterest expenses decreased by $3.7 million, or 4.1%, to $86.4 million during the nine months ended September 30, 2024, compared to $90.1 million during the nine months ended September 30, 2023.
Credit Quality
The allowance for credit losses on loans stood at $18.2 million at September 30, 2024, compared to $18.5 million at December 31, 2023. During the nine months ended September 30, 2024, there was a negative provision for credit losses of $476,000 compared to a provision of $991,000 during the same period in 2023.
Tax Expenses
Income tax expense totaled $4.3 million for the nine months ended September 30, 2024, compared to $2.2 million for the same period in 2023. The effective tax rate was 24.3% for 2024 compared to 19.0% for 2023.
Liquidity Management
Liquidity management involves maintaining adequate liquid assets to meet obligations. As of September 30, 2024, Waterstone Financial had $41.4 million in cash and cash equivalents, up from $36.4 million at December 31, 2023. The primary sources of cash included proceeds from loan sales, long-term borrowings, and deposit increases.
How Waterstone Financial, Inc. (WSBF) Makes Money
Revenue Sources
Waterstone Financial, Inc. generates revenue primarily through interest income from loans and noninterest income from various services. As of September 30, 2024, the breakdown of revenue sources is as follows:
| Revenue Source | Amount (in Thousands) | Percentage of Total Revenue |
|---|---|---|
| Net Interest Income | $33,333 | 47.4% |
| Noninterest Income | $70,297 | 52.6% |
Interest Income
Interest income is derived mainly from loans held for investment and loans held for sale. For the nine months ended September 30, 2024, the following details highlight the interest income:
| Type of Loan | Average Balance (in Thousands) | Interest Income (in Thousands) | Yield |
|---|---|---|---|
| Loans Receivable and Held for Sale | $1,845,203 | $76,675 | 5.55% |
| Mortgage-Related Securities | $171,393 | $3,360 | 2.62% |
| Debt Securities, Federal Funds Sold, and Short-Term Investments | $111,246 | $4,267 | 5.12% |
Noninterest Income
Noninterest income is generated from various services, including mortgage banking income and service charges. For the nine months ended September 30, 2024, the breakdown is:
| Source of Noninterest Income | Amount (in Thousands) |
|---|---|
| Mortgage Banking Income | $66,200 |
| Service Charges on Loans and Deposits | $1,434 |
| Increase in Cash Surrender Value of Life Insurance | $1,562 |
| Other | $1,101 |
Cost Structure
Waterstone Financial's cost structure includes interest expense on deposits and borrowings, along with noninterest expenses. For the nine months ended September 30, 2024, the total costs were:
| Type of Expense | Amount (in Thousands) |
|---|---|
| Interest Expense on Deposits | $29,163 |
| Interest Expense on Borrowings | $21,620 |
| Total Noninterest Expenses | $86,369 |
Net Income and Profitability
For the nine months ended September 30, 2024, Waterstone Financial reported a net income of $13,478,000, with earnings per share (diluted) of $0.72. Key profitability metrics included:
| Metric | Value |
|---|---|
| Return on Average Assets | 0.81% |
| Return on Average Equity | 5.30% |
Loan Production and Sales
Waterstone Financial originated $1.68 billion in mortgage loans held for sale during the nine months ended September 30, 2024, marking a slight increase from the previous year. The revenue from loan production is significantly impacted by market conditions and interest rates.
Market Conditions
The company operates in a competitive environment, affected by interest rates and housing market trends. As of September 30, 2024, mortgage rates showed a decrease, leading to an increase in refinance products, which contributed to revenue growth.
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Resources:
- Waterstone Financial, Inc. (WSBF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Waterstone Financial, Inc. (WSBF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Waterstone Financial, Inc. (WSBF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.